What to Keep in Mind When Buying A Home
Many new homebuyers make the mistake of rushing to buy things to fill their home with as soon as the seller accepts their purchase offer. But there are still a few major things to overcome before the keys are handed out. Here are some things to avoid during the home buying process to assure your transaction goes as smoothly as possible:
- Don’t move money around. As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds.
- Don’t apply for new credit. Applying for credit can lower your credit score, not only will it lower your credit score because of a credit inquiry, but it might raise a red flag to your lender and could deny your loan or ask for more documentation.
- Don’t change jobs if you can help it. Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage loan, especially if you are going to be making more money. But for some people, getting a new job during the loan approval process could raise some concern and affect your loan process.
- Don’t make an expensive purchase. It may be tempting to order that new pool table for your soon-to-be game room, but its best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or vacations, wait after closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your creditworthiness during that time.
- Don’t disregard lenders requirements. You may have been pre-approved for the loan but your work with the lender is far from over. In order to process your loan, you need to meet certain requirements. Your lender will need copies of your W2s, paystubs, bank statements and other documentation. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.
- Make sure you are working with a reputable lender. As with any industry, there are good lenders and bad lenders.The best source for a recommendation is your Real Estate Agent. They know who does a good job and who doesn’t.
Thanks for reading. If you have any thoughts or interesting examples related to this topic you’d like to share, feel free to contact me at email@example.com
Hector Reyes, Realtor.
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